Kogan looks to swoop on e-tailers’ demise

KoganRuslan Kogan expects a number of online retailers will collapse next year, and his e-commerce empire is ready to pick up a bargain.

The founder and chief executive of Kogan.com says he’s on the lookout for acquisitions after unveiling strong annual results that smashed expectations.

“Over the last decade there has been a lot of online retailers who have done a great job in raising money building a website and then blow all the money on marketing and building a brand,” Kogan told AAP.

“As a result of that, we see a lot of those falling over in the coming year and that creates an opportunity for Kogan.com.”

He said Kogan.com had the systems, inventory and now the experience, through its $2.6 million Dick Smith acquisition in April last year, in saving businesses.

However, he declined to give any names.

Chief financial officer David Shafer said the company was a bargain hunter and would only buy if the business was good value and earnings accretive.

Surf and sporting goods retailer Surfstitch and homewares and furniture business Temple & Webster are two high-profile and publicly traded loss-making online retailers.

However, Temple & Webster in June said it had trimmed its losses during 2016/17 and expects to post its first annual profit in 2019.

Kogan.com, which sells consumer electronics, general merchandise, food and travel deals, booked a net profit of $3.7 million for the year to June 30, more than quadruple what it made a year ago.

The group, which listed on the share market in July, 2016, has significantly expanded its higher-margin private labelled products which helped drive revenue up 37.1 per cent to $289.5 million.

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